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The new Code of Audit Practice came into force on 1 April 2020, after being approved by Parliament. The new Code applies to audits of local bodies’ 2020-21 financial statements onwards: New Code of Audit Practice [PDF – 262 KB] We are now developing the detailed statutory Auditor Guidance Notes (AGNs) that will support the […]

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August 21, 2019

The new Code of Audit Practice came into force on 1 April 2020, after being approved by Parliament. The new Code applies to audits of local bodies’ 2020-21 financial statements onwards:

New Code of Audit Practice [PDF – 262 KB]

We are now developing the detailed statutory Auditor Guidance Notes (AGNs) that will support the new Code. The most significant changes will be made to the guidance on auditor’s work on arrangements to secure value for money (AGN 03) and auditor reporting (AGN 07).

AGN 3 consultation

The consultation on AGN 03 has now closed – see further information.

The consultation process 

Schedule 6 of the Act requires that the Code be reviewed, and revisions considered at least every five years. The previous Code came into force on 1 April 2015, and the maximum five-year lifespan of the Code meant it needed to be reviewed and a new Code laid in Parliament in time for it to come in to force no later than 1 April 2020. 

In order to determine what changes might be appropriate, we consulted on potential changes to the Code in two stages.

Stage 1 involved engagement with key stakeholders and public consultation on the issues that are considered to be relevant to the development of the Code. 

We received a total of 41 responses to the consultation which included positive feedback on the two-stage approach to developing the Code that we adopted. We considered carefully the views of respondents in respect of the points drawn out from the issues paper and this informed the development of the draft Code. A summary of the responses received to the questions set out in the issues paper can be found below.  

Local audit in England Code of Audit Practice – Stage 1 Consultation Response [PDF – 256KB]  

Stage 2 involved consulting on the draft text of the new Code. To support stage 2, we published a consultation document, which highlighted the key changes to each chapter of the draft Code.  The consultation document and a copy of the draft Code can be found below: 

Local audit in England: Code of Audit Practice – Consultation on draft Code [PDF – 61KB]  

Draft Code of Audit Practice [PDF – 355KB]  

We received a total of 38 responses to Stage 2 of the consultation.   The document below sets out the issues we considered as a result of feedback to the Stage 2 consultation, and highlights the key changes made to the final draft of the Code:

Code of Audit Practice Consultation Stage 2 Response [PDF – 130KB]

If you have any questions about our consultation on the new Code, you can contact the Local Audit Code and Guidance Team at LACG@nao.org.uk